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Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased

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Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased $12,500 of merchandise on account under terms 3/10, n/30. 2) The company returned $2,000 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $19,000 cash. What effect will the return of merchandise to the supplier in event (2) have on Darlington's financial statements? Multiple Choice Assets and liabilities decrease by $2,000 None. It is an asset exchange transaction Assets and liabilities decrease by $1,940, Assets and stockholders' equity decrease by $2,000

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